Audit the Fed Amendment Passes House Committee

WASHINGTON-November 20, 2009 -During the House Financial Services Committee markup of the Financial Stability Improvement Act of 2009, Congressman Ron Paul's (R-TX) amendment to increase Federal Reserve transparency was passed by a vote of 43 to 26.

During the proceeding, parallel amendments were introduced, one by Paul, the other by Congressman Mel Watt (D-NC), which would have limited the audit to only a narrow examination of TARP funds and lending powers, and would have actually allowed the Fed to increase the secrecy under which they operate when it comes to setting monetary policy.

Rep. Paul's amendment inserted language that replaced Watt's, and is similar to that in his bill, H.R. 1207, which is co-sponsored by 311 members of the House of Representatives. The bill would allow for a full Government Accountability Office (GAO) audit of the Federal Reserve including emergency lending facilities, past decisions on setting interest rates and agreements with foreign central banks.

"We are happy to see the Financial Services Committee preserve a measure to bring true Fed transparency," said John Tate, President of Campaign for Liberty. "This amendment helps to ensure that real and complete audit legislation remains unaltered, and from here on out we will continue to push for a standalone floor vote of H.R. 1207."

Congressman Paul's amendment was greeted with a great deal of support, among those who strongly advocated for the amendment included Rep. Spencer Bachus (R-AL), who defended the measure throughout the proceeding and also voted for adoption of the amendment.

Categories: Federal Legislation, Economy, Monetary Policy
Tags: audit the fed, HR 1207, Mel Watt, House FInancial Sevices Committee

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